Back to top

Image: Bigstock

Has Chegg (CHGG) Outpaced Other Computer and Technology Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Chegg (CHGG - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Chegg is one of 616 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. CHGG is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CHGG's full-year earnings has moved 21.03% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CHGG has returned about 0.50% since the start of the calendar year. At the same time, Computer and Technology stocks have lost an average of 9.34%. As we can see, Chegg is performing better than its sector in the calendar year.

To break things down more, CHGG belongs to the Internet - Software industry, a group that includes 90 individual companies and currently sits at #73 in the Zacks Industry Rank. On average, stocks in this group have lost 3.98% this year, meaning that CHGG is performing better in terms of year-to-date returns.

CHGG will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chegg, Inc. (CHGG) - free report >>

Published in